Preliminary results FY2015 November 27, 2015
Disclaimer Stabilus S.A. (the Company, later Stabilus ) has prepared this presentation solely for your information. It should not be treated as giving investment advice. Neither the Company, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other person shall have any liability whatsoever for any direct or indirect losses arising from any use of this presentation. While the Company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external source, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those described in, or expressed or implied by, such statements. These statements reflect the Company s current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as anticipate, believe, estimate, expect, intend, plan, project and target. No obligation is assumed to update any such statement. 1
Agenda 1. FY2015 highlights 2. Business by geography 3. Business by market 4. Outlook 5. Appendix 2
Agenda 1. FY2015 highlights 2. 3. 4. 5. 3
Highlights FY2015 (preliminary) Fiscal year-end September Revenue Revenue up by 20.5% to 611.3mm (+ 104.0mm vs. ) Growth in all regions with NAFTA (+29.7%), Asia / Pacific and RoW (+16.3%) as well as Europe (+15.4%) Growth in all markets with Powerise (+62.9%), Gas Spring (+15.5%), Swivel Chair (+14.5%) and Capital Goods (+4.9%) Adj. EBITDA Adj. EBITDA up by 16.0% to 107.3mm (+ 14.8mm vs. ) Adj. EBITDA margin at 17.6% (vs. margin of 18.2%) Adj. EBIT Adj. EBIT up by 17.1% to 76.2mm (+ 11.1mm vs. ) Adj. EBIT margin at 12.5% (vs. margin of 12.8%) Refinancing of the high-yield bond concluded on June 16, 2015, resulting in interest savings of c. 13mm p.a. Net debt Net financial debt of 224.2mm Net financial debt / adj. EBITDA LTM decreased to 2.1x (vs. 2.5x as per FY2014) Outlook FY2016 revenue guidance: approx. 660mm, i.e. c. 8% y-o-y organic growth ($/ rate assumption: 1.15$/ ) Adj. EBIT margin is expected to be in line with historic results at 12-13% 4
Operational achievements in FY2015 Powerise revenue up by 54mm (+62.9%) to 139.8mm Powerise Penetration of mass market platforms in Europe (e.g. Ford Mondeo and VW Passat) Key business wins of major platforms from key customers worldwide Powerise capacity expanded in Mexico (4 th production line started production in May 2015); ongoing ramp-up in Romania (set-up of 3 rd production line), supplying key brands like Audi, BMW and Ford Asia Industrial sales force expanded, local Industrial business application R&D team set up Dedicated new facility for Industrial Gas Spring and Powerise production in China finalized Powder paint line successfully ramped-up in Korea Production Footprint Europe reorganization: transfer of small lot-size tube production from Germany to Romania Construction of a fully-automated gas spring production line in Germany in progress STAR Turnaround of Swivel Chair business completed Further cascade of refined strategies and targets for the overall organization STAR - Next Ignition: growth strategy until 2025 5
Agenda 1. 2. Business by geography 3. 4. 5. 6
Stabilus shows strong operating performance in FY2015 (y-o-y) Revenue ( mm) Adj. EBITDA 1 ( mm) % margin 17.6% 18.2% 507.3 611.3 92.5 107.3 Adj. EBIT 1 ( mm) FCF 2 (Adj. EBITDA-capex) ( mm) % margin 12.5% % revenue 12.8% 11.2% y-o-y: (1.9)% 9.1% 65.1 76.2 56.9 55.8 Note: Stabilus fiscal year-end is September 1 Adj. EBIT/ EBITDA represents EBIT/ EBITDA, as adjusted by management primarily in relation to advisory fees, IPO-related expenses, restructuring / ramp-up expenses and pension interest 2 Simplified definition of FCF differs to the more detailed presentation in quarterly/annual report 7
Revenue and adj. EBIT growth by region (y-o-y) Revenue by region 1 ( mm) Adj. EBIT 1,2 by region ( mm) Europe NAFTA Asia / Pacific and RoW Europe NAFTA Asia / Pacific and RoW 611.3 Growth 76.2 Growth 507.3 73.5 16.3% 65.1 3 10.0 (2.0)% 63.2 229.3 29.7% 10.2 25.1 51.2% 176.8 16.6 267.3 308.5 15.4% 38.0 41.1 8.2% Note: Stabilus fiscal year-end is September. Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 1 Billed-from view, without intersegment revenue. 2 Adj. EBIT represents EBIT, as adjusted by management primarily in relation to advisory fees, IPO-related expenses, restructuring / ramp-up expenses and pension interest. 3 thereof 0.3mm other/consolidation and rounding. 8
NAFTA Revenue growth (y-o-y) Revenue 1 ( mm) Key highlights At incurred FX At constant FX 176.8 229.3 196.0 NAFTA car production in at 17.4mm units, i.e. +3.5% vs. previous year NAFTA external revenue increased by 29.7% to 229.3mm Adj. EBIT ( mm) % margin 10.9% 9.4% 25.1 16.6 External revenue in US$ terms improved by 10.8% to $266.0mm in vs. $240.0mm in NAFTA business share of the group from 34.9% in to 37.5% in improving the regional business mix US: preparation for the installation of an additional fully automated gas spring production line and for the set up of an improved aftermarket distribution process Mexico: preparation for the installation of the fifth Powerise line; Powerise capacity increase up to ~2.3mm units p.a. for 2016 in execution Note: Stabilus fiscal year-end is September 1 External revenue only 9
Europe Revenue growth (y-o-y) Revenue 1 ( mm) Key highlights 267.3 Adj. EBIT ( mm) % margin 14.2% 38.0 Note: Stabilus fiscal year-end is September 1 External revenue only 308.5 13.3% 41.1 Europe car production in at 20.7mm units, i.e. +2.8% vs. previous year Europe s Gas Spring revenue increased by 4.9% to 134.0mm in ; European Powerise revenue more than doubled in ( 54.8mm in vs. 21.8mm in ) Select European Powerise launches in : Porsche Macan, Porsche Cayenne, Audi A7, Ford S-Max, Mercedes CLA, Mercedes GLA, VW Passat, Ford Mondeo EBIT margin impacted by disproportionately high Automotive growth Germany: construction of a fully-automated gas spring production line with capacity of ~7mm units p.a. in progress; expected start of production: March 2016 Footprint Europe reorganization: preparation to relocate further ~150 jobs to Romania over the next three years; Koblenz key management rejuvenation finalized 10
Asia / Pacific and RoW Revenue growth (y-o-y) Revenue 1 ( mm) Key highlights 63.2 73.5 Asia/Pacific and RoW car production in at 49.9mm units, i.e. -0.4% vs. previous year Strong year-over-year revenue growth of 16.3% in mainly driven by Automotive Gas Spring increased SUV demand in China supports plant loading China: China revenue at 42.8mm (+27.4% vs. ); China s revenue is approx. 7% of group revenue Adj. EBIT ( mm) % margin 16.1% 13.6% y-o-y: (2.0)% 10.2 10.0 China R&D, sales and application headcount increased to 30 in (up 7 heads incl. 3 expatriates) Korea: new powder coating line installed and in production; extensive launch training and cost for customer approval Brazil continues to show revenue weakness as well as poor profitability: high import content combined with weak currency (BRL) burdens result Note: Stabilus fiscal year-end is September 1 External revenue only 11
Agenda 1. 2. 3. Business by market 4. 5. 12
% of revenue breakdown Revenue growth by market (y-o-y) Revenue by market ( mm) Automotive Industrial¹ 611.3 507.3 166.5 177.0 Growth 6.3% 340.8 434.2 27.4% Industrial 33% Automotive 67% Industrial 29% Automotive 71% Note: Stabilus fiscal year-end is September 1 Industrial including Swivel Chair revenue Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 13
Revenue growth Automotive business (y-o-y) Revenue Key highlights Gas Spring Powerise 434.2 Growth Global car production in up to 88.0mm (+1.1% vs. 87.0mm in the previous fiscal year) 340.8 139.8 62.9% Continuing consumer trend towards SUV s supports automotive revenue development for Powerise as well as 85.8 Gas Springs Automotive Gas Spring business with 15.5% revenue increase continues to outperform vehicle production growth 255.0 294.4 15.5% 62.9% growth in Powerise reflects new product launches across various OEMs in, e.g. Ford Explorer, Skoda Superb, BMW 2-series Gran Tourer, Ford S-Max, VW Passat, Ford Mondeo - combined with higher take rates in many car lines Note: Stabilus fiscal year-end is September 14
Revenue growth Industrial business (y-o-y) Revenue Key highlights Capital Goods Swivel Chair Swivel Chair revenue improvement of 14.5% confirms 166.5 24.2 177.0 27.7 Growth 14.5% success of the turnaround strategy and customer interest Good growth pattern in many Capital Goods subsegments. Soft agriculture and construction endmarket dynamics dampen overall Capital Goods 142.3 149.3 4.9% revenue evolution Note: Stabilus fiscal year-end is September 15
Agenda 1. 2. 3. 4. Outlook 5. 16
Outlook FY2016: Financial performance FY2015 Preliminary FY2016 Guidance Revenue 611.3mm ca. 660mm % Growth 20.5% ca. 8.0% % Adj. EBIT margin 12.5% 12-13% Comments On track to deliver another record year, aiming for ambitious revenue and EBIT targets Regional diversification improving with higher share of business in NAFTA and Asia Powerise continues to be a clear growth driver going forward Revenue guidance for FY2016: approx. 660mm ($/ rate assumption: 1.15$/ ) Adj. EBIT margin guidance stable at 12-13% 17
Financial calendar December 21, 2015 Annual Report 2015 February 15, 2016 Interim Report Q1 FY2016 Investor Relations Andreas Schröder Phone: +352 286 770 21 E-Mail: anschroeder@stabilus.com For further information please visit: www.ir.stabilus.com 18
Strategic priorities for FY2016 Growth Focus on product and application innovation Winning key platforms and increasing market share with existing and new applications Focus on product and process robustness Powerise Further capitalize on extremely strong end-market momentum Production footprint optimization towards mass production Industrial Focus on industrial aftermarket Transfer of Powerise solutions into industrial applications 19
Agenda 1. 2. 3. 4. 5. Appendix 20
P&L overview P&L ( mm) 2014 Actual 2015 Preliminary Revenue 507.3 611.3 COGS (387.7) (463.6) Gross Profit 119.6 147.7 % margin 23.6% 24.2% R&D (20.3) (24.2) S&M (38.7) (44.1) G&A (32.6) (27.3) Other income/expenses 3.1 3.6 Adjustments 33.9 20.5 Adj. EBIT 65.1 76.2 % margin 12.8% 12.5% Depreciation & amortization (excl. PPA) 27.4 31.1 Adj. EBITDA 92.5 107.3 % margin 18.2% 17.6% Advisory 17.6 1.4 Restructuring 1 / ramp-up 2.1 5.3 Pension interest add-back 1.5 1.1 PPA adjustments 12.7 12.7 Total Adjustments 33.9 20.5 1 thereof Footprint Europe restructuring 4.7mm in, incl. 4.2 million Koblenz Management rejuvenation. Note: Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 21
Balance sheet overview Balance sheet ( mm) September 2014 Actual September 2015 Preliminary Property, plant and equipment 119.6 134.0 Goodwill 51.5 51.5 Other intangible assets 171.0 166.5 Inventories 49.5 59.8 Trade receivables 56.5 62.8 Other assets 38.7 28.2 Cash 33.5 39.5 Total assets 520.3 542.2 Equity incl. minorities 76.1 76.7 Debt (incl. accrued interest) 262.3 263.6 Pension plans and similar obligations 48.4 48.0 Deferred tax liabilities 43.8 39.0 Trade accounts payable 53.7 68.9 Other liabilities 36.0 46.0 Total equity and liabilities 520.3 542.2 Net financial debt 228.9 224.2 Net financial debt / adj. EBITDA LTM 2.5x 2.1x Refinancing in June 2015 Old financing structure (until June 16, 2015): High-yield bond due 2018 with the remaining 256.1 principal amount and 7.75% interest rate and a committed 25 million revolving credit facility New financing structure (from June 16, 2015): 270 million term loan facility and 50 million revolving credit facility (both due 2020) with an interest rate of currently 2% over Euribor Refinancing impact on FY2015 earnings and cash flow: 9.9 million early redemption fee 5.7 million transaction costs, thereof 5.0 million capitalized 15.4 million loss from the derecognition of embedded derivatives (from other assets; non-cash item) Note: Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 22
Cash flow overview Cash Flow Statement ( mm) 2014 Actual 2015 Preliminary Cash flow from operating activities 87.8 86.0 Cash flow from investing activities (35.6) (51.2) Cash flow from financing activities (41.2) (28.4) Net increase / (decrease) in cash 11.0 6.4 Effect of movements in exchange rates 0.7 (0.4) Cash as of beginning of the period 21.8 33.5 Cash as of end of period 33.5 39.5 Comments In begin of sale of receivables program (factoring); 20.2mm trade receivables were sold to a factor, resulting in a cash-in of 19.1mm in March 2014. In Q4 factoring of Romanian Powerise receivables implemented - resulting in 6.7 million cash-in. Note: Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 23
External revenue by region and customer market External revenue ( mm) 2014 Actual 2015 Preliminary Gas Spring 127.8 134.0 Powerise 21.8 54.8 Industrial 96.7 96.4 Swivel Chair 21.0 23.3 Europe 267.3 308.5 Gas Spring 72.2 95.3 Powerise 64.0 85.0 Industrial 37.4 44.6 Swivel Chair 3.2 4.4 NAFTA 176.8 229.3 Gas Spring 55.0 65.1 Powerise - - Industrial 8.1 8.3 Swivel Chair 0.1 0.1 Asia / Pacific and RoW 63.2 73.5 Total 507.3 611.3 Note: Numbers rounded to one decimal. Due to rounding, numbers presented may not add up precisely to the totals provided. 24
Adj. EBITDA by region (y-o-y) Adj. EBITDA by region ( mm) 2014 Actual 2015 Preliminary Europe 57.5 62.5 NAFTA 22.8 31.6 Asia / Pacific and RoW 12.2 13.2 Total 92.5 107.3 25